What is sunk cost 1 Expenditure done on advertisement 2 Expenditure done on research and development...........

Economic Affairs Financial Markets

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What is sunk cost?

1.Expenditure done on advertisement

2.Expenditure done on research and development

3.Sunk costs are also called perspective cost.

Choose the correct option/s

Only 2

1 and 2

Only 1

1, 2 and 3

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Explanation:

1 and 2

Sunk costs refer to costs that have already been incurred and cannot be recovered regardless of future actions. They are not related to perspective costs but rather to costs that have already been spent and cannot be retrieved, irrespective of the decision made.